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SOLIDITY OF THE "CHINESE WALL"
1 July 1995
The Office of Electricity Regulation (OFFER) is investigating the Regional Electricity Companies' (RECs) dealings with applications for grid connection for renewable projects, as well as their dual roles as developers of renewable schemes and controllers of the local grid network. Last July, the parliamentary Welsh Affairs Select Committee identified the potential for a conflict of interests as a cause for concern. In its report on wind energy the committee questioned the solidity of the "Chinese wall" separating the RECs' generating companies from their core business. It recommended OFFER look more closely at this area. Wind developers have also brought the issue to OFFER's notice, but it has been unable to take action in the absence of any official complaints. OFFER views the dual role as a cause for concern and favours a wider separation of the RECs' businesses.
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